[CLBS] Debtors wish to sell house during Ch. 13-- may they use the money however they want?

[Tecla Druffel]

Debtors are in a confirmed Ch. 13 plan. On date of filing, debtors asserted
automatic homestead exemption on residence located in Idaho. There were no
objections raised to the claim of exemption. Now debtors wish to sell the
home and move out of state. Confirmed plan states property vests in debtors
upon confirmation.

*May the debtors freely use the proceeds?* Of course, I want the answer to
be "yes," and I can make several arguments to support it but I wonder if I
have a blind spot. Has anyone tested the vesting clause of a Ch. 13 plan
when it comes to exempt assets turned into money during the pendency of a
Ch. 13 case? Debtors' credit is shot so obtaining a new mortgage is
difficult and any new homestead would likely be outside of Idaho.

Feel free to email me directly, tecla at lewistonbankruptcylawyer.com.

Thank you!
Tecla Druffel